Logistics company Delhivery registers 44% increase in FY17 revenues

Logistics company Delhivery posted approximately 44% increase in total revenues to Rs 751 crore during FY17 from previous year’s Rs 523 crore as the company’s losses narrowed marginally, according to regulatory filings with the Ministry of Corporate Affairs.

The Tiger Global-backed company’s losses dropped from Rs 317 crore during FY16 to Rs 249 crore in FY17 even as total expenses shot up to Rs 1,000 crore in FY17 from Rs 840 crore the previous year, as per the company’s statement of profit and loss.

"Due to heavy operational costs and expansion plans being executed, the company has incurred a net loss of Rs 2,49 crore," the financials stated. Employee benefit expenses at Rs 198 crore formed approximately one-fifth of the total expenses of the company. It climbed up from Rs 164 crore in the previous year.

Founded in 2011 by Sahil Barua and Mohit Tandon along with three others, Delhivery’s bread-and-butter lies in providing logistics services to e-commerce companies. In an interview with ET last year, Barua had said Delhivery was on track to becoming profitable by fiscal 2018 and was preparing for a public offering.

Experts in the space believe that the slow growth among smaller e-commerce players may delay Delhivery’s plans to reach profitability, but the company will reach their target, nonetheless. "The company is showing a growth in topline and shrinking losses," said Harminder Sahni, MD of consulting firm Wazir Advisors. "They may reach profitability in three years instead of one."